Fidelity Freedom® 2040 Fund

  • Symbol: FFFFX
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Summary

Morningstar® Snapshot*

AS OF 03/31/2014; MORNINGSTAR CATEGORY: Target Date 2036-2040
Returns 3 out of 5, Average Returns
LOWAVGHIGH
Expenses 2 out of 5, Below Average Fees
LOWAVGHIGH
Risk of this Category Category Risk Rating:6, where 1 is Lower and 10 is Higher
LOWERHIGHER

*All data provided by Morningstar. Please click on each indicator above to learn more about comparison groups and methodology.

Performance

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AS OF 3/31/2014 ; *YTD AS OF 4/17/2014
YTD (Daily)* 1 Yr 3 Yr 5 Yr 10 Yr
YTD (Daily)* +0.32% 1 Yr +15.08% 3 Yr +8.36% 5 Yr +17.18% 10 Yr +6.13%

Hypothetical Growth of $10,000

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AS OF 03/31/2014; MORNINGSTAR CATEGORY: Target Date 2036-2040
Shows growth of hypothetical $10,000 investment in Fidelity Freedom® 2040 Fund compared to S&P 500,FID FF 2040 Comp Idx,Target Date 2036-2040 over the selected time period
Fidelity Freedom® 2040 Fund
Target Date 2036-2040

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The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.

Fund Manager(s)

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Brett Sumsion since 1/21/2014 Andrew Dierdorf since 6/21/2011

Fund Overview

Objective

Seeks high total return until its target retirement date. Thereafter, the fund's objective will be to seek high current income and, as a secondary objective, capital appreciation.

Strategy

Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2040). Ultimately, the fund will merge with Fidelity Freedom Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund's target retirement date in an effort to achieve the fund's overall investment objective.

Risk

The investment risk of each Fidelity Freedom Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds' target dates.

Additional Disclosures

A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund's prospectus for more detailed information about the fund.

Details

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Morningstar Category Target Date 2036-2040
Fund Inception 9/6/2000
NAV
4/17/2014
$9.55
Exp Ratio (Gross)Glossary definition opens in new window.
9/26/2013
0.81%
($8.10 per $1000)
Exp Ratio (Net)Glossary definition opens in new window.
9/26/2013
0.81%
($8.10 per $1000)
Minimum to Invest 5 $2,500.00
Turnover Rate
9/30/2013
16%
Net Assets ($M)
3/31/2014
$7,025.00
12 Month Low-High
3/31/2014
$8.45 - $9.76

Quarter-End Average Annual Total Returns

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AS OF 3/31/2014; *FUND INCEPTION 9/6/2000

EXPENSE RATIO (GROSS):Glossary definition opens in new window.
0.81% AS OF 9/26/2013
1 Yr 3 Yr 5 Yr 10 Yr Life of Fund*
Before TaxesGlossary definition opens in new window.
Fidelity Freedom® 2040 Fund 15.08% 8.36% 17.18% 6.13% 2.99%
After Taxes on DistributionsGlossary definition opens in new window.
Fidelity Freedom® 2040 Fund 13.29% 7.22% 16.11% 5.18% 2.18%
After taxes on distributions and sale of fund sharesGlossary definition opens in new window.
Fidelity Freedom® 2040 Fund 9.07% 6.13% 13.58% 4.74% 2.16%

Read more about after-tax returns.

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

Watch a brief video to learn about using the new mutual fund library to evaluate funds

2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.

Performance & Risk

Average Annual Total Returns

6, 3, 2 More Information
AS OF 3/31/2014; *FUND INCEPTION 9/6/2000
1 Yr 3 Yr 5 Yr 10 Yr Life of Fund*
Fidelity Freedom® 2040 Fund 15.08% 8.36% 17.18% 6.13% 2.99%
S&P 500 21.86% 14.66% 21.16% 7.42% 3.67%
FID FF 2040 Comp Idx 17.53% 11.28% 18.59% 7.29% 4.58%
Target Date 2036-2040 14.26% 8.89% 17.41% 5.96% --
Rank in Morningstar Category 59% 62% 58% 38% --
# of Funds in Morningstar Category 217 182 165 33 --

Hypothetical Growth of $10,000

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AS OF 03/31/2014; MORNINGSTAR CATEGORY: Target Date 2036-2040
Fidelity Freedom® 2040 Fund
Target Date 2036-2040
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
This Fund 11.32% 9.06% 13.49% 9.31% -38.80% 31.65% 14.62% -4.63% 14.53% 21.05% 1.05%
Benchmark 10.88% 4.91% 15.79% 5.49% -37.00% 26.46% 15.06% 2.11% 16.00% 32.39% 1.81%
Benchmark-2 13.44% 7.05% 16.38% 6.39% -35.34% 29.75% 14.15% -0.63% 14.63% 24.66% 1.62%
Category 11.71% 7.41% 14.67% 6.21% -37.94% 30.90% 14.37% -3.49% 14.64% 19.97% 1.40%
+/- Benchmark 0.44% 4.15% -2.30% 3.82% -1.80% 5.19% -0.44% -6.74% -1.47% -11.34% -0.76%
+/- Benchmark-2 -2.12% 2.01% -2.89% 2.92% -3.46% 1.90% 0.47% -4.00% -0.10% -3.61% -0.57%
+/- Category -0.39% 1.65% -1.18% 3.10% -0.86% 0.75% 0.25% -1.14% -0.11% 1.08% -0.35%

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The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.

Quarter-End Average Annual Total Returns

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AS OF 3/31/2014; *FUND INCEPTION 9/6/2000

EXPENSE RATIO (GROSS):Glossary definition opens in new window.
0.81% AS OF 9/26/2013
1 Yr 3 Yr 5 Yr 10 Yr Life of Fund*
Before TaxesGlossary definition opens in new window.
Fidelity Freedom® 2040 Fund 15.08% 8.36% 17.18% 6.13% 2.99%
After Taxes on DistributionsGlossary definition opens in new window.
Fidelity Freedom® 2040 Fund 13.29% 7.22% 16.11% 5.18% 2.18%
After taxes on distributions and sale of fund sharesGlossary definition opens in new window.
Fidelity Freedom® 2040 Fund 9.07% 6.13% 13.58% 4.74% 2.16%

Read more about after-tax returns.

Cumulative Total Returns

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AS OF 3/31/2014; *YTD (DAILY) AS OF 4/17/2014
YTD (Daily)* YTD (Monthly) 1 Month 3 Months 6 Months
Fidelity Freedom® 2040 Fund 0.32% 1.05% -0.21% 1.05% 7.82%
S&P 500 -- 1.81% 0.84% 1.81% 12.51%
FID FF 2040 Comp Idx -- 1.62% 0.39% 1.62% 9.28%
Target Date 2036-2040 -- 1.40% -0.06% 1.40% 7.87%

Fund Risk and Return

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AS OF 3/31/2014; MORNINGSTAR CATEGORY: Target Date 2036-2040

Risk

The investment risk of each Fidelity Freedom Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds' target dates.

Volatility Measures

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Beta 0.95
AS OF 3/31/2014

A measure of a portfolio's sensitivity to market movements (as represented by a benchmark index). The benchmark index, such as the S&P 500 or EAFE index, has a beta of 1.0. A beta of more (less) than 1.0 indicates that a fund's historical returns have fluctuated more (less) than the benchmark index. Beta is a more reliable measure of volatility when used in combination with a high R2 which indicates a high correlation between the movements in a fund's returns and movements in a benchmark index.

R2 0.94
AS OF 3/31/2014

A measurement of how closely the portfolio's performance correlates with the performance of a benchmark index, such as the S&P 500. R2 is a proportion which ranges between 0.00 and 1.00. An R2 of 1.00 indicates perfect correlation to the benchmark index, that is, all of the portfolio's fluctuations are explained by performance fluctuations of the index, while an R2 of 0.00 indicates no correlation. Therefore, the lower the R2, the more the fund's performance is affected by factors other than the market as measured by that benchmark index. An R2 value of less than 0.5 indicates that the Annualized Alpha and Beta are not reliable performance statistics.

Sharpe Ratio 0.71
AS OF 3/31/2014

The Sharpe ratio is a measure of historical adjusted performance calculated by dividing the fund's excess returns (fund's average monthly returns minus the average monthly return of the Salomon Smith Barney 3-Month T-Bill Index) by the standard deviation of those returns. The higher the ratio, the better the fund's return per unit of risk.

Standard Deviation 12.25
AS OF 3/31/2014

Statistical measure of how much a return varies over an extended period of time. The more variable the returns, the larger the standard deviation. Investors may examine historical standard deviation in conjunction with historical returns to decide whether an investment's volatility would have been acceptable given the returns it would have produced. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Standard deviation does not indicate how an investment actually performed, but it does indicate the volatility of its returns over time. Standard deviation is annualized. The returns used for this calculation are not load-adjusted.

Volatility measures are based on the variability of historical returns of the portfolio. In the case of annuity funds, this is before the effect of annuity charges. Relative Volatility, Beta, and R2 compare a portfolio's total return to those of a relevant market, represented by the benchmark index. Standard Deviation is calculated independent of an index.

Historical Fund Performance

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Current year's data as of: 3/31/2014
Year Total Returns Capital Gains Dividends Net Assets ($M)
2014 1.05% -- -- $7,025.00
2013 21.05% $0.325 $0.134 $7,352.18
2012 14.53% $0.022 $0.145 $6,675.33
2011 -4.63% $0.15 $0.132 $6,892.60
2010 14.62% $0.07 $0.119 $9,017.38
2009 31.65% $0.07 $0.125 $8,253.63
2008 -38.80% $0.3348 $0.1552 $5,398.09
2007 9.31% $0.48 $0.15 $7,436.44
2006 13.49% $0.4 $0.13 $5,249.14
2005 9.06% $0.09 $0.095 $3,118.45

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.

Fund Characteristics and Attribution

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2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.

Ratings

Morningstar Ratings

AS OF 03/31/2014; MORNINGSTAR CATEGORY: Target Date 2036-2040
Overall
3 out of 5 stars
Out of 182 funds
3 Yr
2 out of 5 stars
Out of 182 funds
5 Yr
3 out of 5 stars
Out of 165 funds
10 Yr
3 out of 5 stars
Out of 33 funds

An overall rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Metrics as of the date stated. The number of funds in the Target Date 2036-2040 category tracked by Morningstar was 182 for the 3 year period and Overall Ranking; 165 for the 5 year period; and 33 for the 10 year period. Please click on the question mark above for additional Morningstar information.

Past performance is no guarantee of future results.

Lipper Ranking

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AS OF 3/31/2014; LIPPER PEER GROUP: Growth & Income
1 Yr
#1,381 out of 2,250 funds
5 Yr
#975 out of 1,483 funds
10 Yr
#504 out of 713 funds

The fund is ranked based on total return. Each fund is ranked within a universe of funds with similar investment objectives. Rankings include the reinvestment of dividends and capital gains but exclude the effect of a fund's sales load, if applicable. Lipper Inc. is a nationally recognized organization that ranks the performance of mutual funds.

Past performance is no guarantee of future results.

Watch a brief video to learn about using the new mutual fund library to evaluate funds

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.

Composition

Asset Allocations

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AS OF 3/31/2014
Domestic Equity Funds
63.29%
Equity Funds
62.32%
Commodity Funds
0.97%
International Equity Funds
26.69%
Developed Market Equity Funds
21.11%
Emerging Market Equity Funds
5.58%
Bond Funds
9.98%
Investment Grade Bond Funds
1.55%
High Yield Bond Funds
6.62%
Floating Rate Funds
0.65%
Emerging Markets Debt Funds
0.68%
Real Estate Debt Funds
0.48%
Short-Term Funds & Net Other Assets
0.04%
NET OTHER ASSETS
0.04%

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the Portfolio Composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

Some domestic equity funds may invest a significant portion of their underlying assets in international securities. The allocation percentages may not add up to 100% due to rounding and/or cash balances.

The percent of net assets invested in both domestic and foreign Equities (common stocks, preferred stocks, rights and warrants, convertible preferred stocks and stock index futures and options), Bond (all debt instruments, including investment grade, non-investment grade, non-rated securities and convertible bonds), and Cash & Net Other Assets (cash, repurchase agreements, receivables and payables).

Portfolio Data

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Turnover Rate
16%
9/30/2013

Equity StyleMap®*

AS OF 2/28/2014
Capitalization
LG current
MD
SM
Value Blend Growth
Style
Current
Historical

Large Blend

Invest in companies with market values greater than $10 billion. These funds invest in a combination of growth and value-oriented stocks.

*84.19%  Fund Assets Covered

Fixed Income StyleMap®*

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AS OF 2/28/2014
Credit Quality
High
Med
Low current
Ltd Mod Ext
Interest Rate Sensitivity
Current
Historical

Low Quality Moderate Sensitivity

Hold securities with a low asset-weighted average credit rating and a moderate sensitivity to interest rate changes as defined by the fund's effective duration, both according to Morningstar's rating system.

*8.96%  Fund Assets Covered

Asset Allocation Over Time

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Fidelity Freedom Funds invest in a diversified mix of Fidelity domestic equity, international equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart below shows, Freedom Funds follows an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 10-19 years after the target date.

Fund Facts

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Fiscal Year End
March
Fund Inception
9/6/2000
Net Assets ($M)
$7,025.00
3/31/2014
Fund Number
718
Fund Symbol
FFFFX
Order Cutoff Time
04:00 PM EST

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

Browse Our Proxy Voting Results

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2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.

Fees and Distributions

Expenses & Fees

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0.81%
($8.10 per $1000)
9/26/2013
Distribution and/or service fee(12b-1) Fees
0.00%
Small Balance Fee 10

You can receive a prospectus from Fidelity by mail

See prospectus for more information on Fees, Expenses & Loads.

Minimums

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Regular Initial Investment 5
$2,500.00
IRA Initial Investment
$2,500.00
Regular/IRA Additional Investments
$0.00
Required Balance
$2,000.00
Direct Deposit
$0.00

Features

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Retirement Accounts
yes
Check Writing
no
Direct Deposit
yes
Automatic Account Builder
yes
Max Exchange Redemptions in a Year
yes
Simple IRA
yes

Distribution

Dividend History

Date Per Share Amount Reinvestment Price
12/27/13 $0.12 $9.48
5/03/13 $0.014 $8.83
12/28/12 $0.131 $8.16
5/04/12 $0.014 $7.94

Capital Gains History

Date Per Share Amount Reinvestment Price
12/27/13 $0.175 $9.48
5/03/13 $0.15 $8.83
12/28/12 $0.022 $8.16
12/29/11 $0.133 $7.36

Pricing

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AS OF 3/31/2014
NAV
$9.55
4/17/2014
12 Month Low-High
$8.45 - $9.76
Monthly Low-High
$9.49 - $9.71
On 3/31/2014
$9.62

Price History By Month

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Actual Values: Mar. 2014 to Mar. 2013

Close Low High
Mar $9.62 $9.49 $9.71
Feb $9.64 $9.04 $9.64
Jan $9.22 $9.19 $9.53
Dec $9.52 $9.45 $9.76
Nov $9.61 $9.35 $9.61
Oct $9.45 $9.09 $9.52
Sep $9.20 $8.92 $9.33
Aug $8.86 $8.86 $9.10
Jul $9.00 $8.67 $9.06
Jun $8.62 $8.45 $8.86
May $8.81 $8.81 $9.02
Apr $8.93 $8.64 $8.93
Mar $8.78 $8.58 $8.78

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

Analysis

Fourth Quarter 2013 Summary

Overview

  • With the exception of the Freedom Income Fund, each Freedom fund seeks high total return until reaching its respective target retirement date; thereafter, each fund's objective will be to seek high current income and, as a secondary objective, capital appreciation.
  • Fidelity Freedom Funds are designed so that the target date referenced in the fund name is the approximate date when we expect investors to start withdrawing money.
  • Except for the Freedom Income Fund, each fund's asset allocation strategy becomes increasingly conservative as it approaches its target date - and beyond. Ultimately, the funds are expected to merge with the Freedom Income Fund.
  • The investment risks of each Fidelity Freedom Fund shift over time as the funds' asset allocations change. The funds are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small-cap, commodity-linked and non-U.S. securities. Principal invested is not guaranteed at any time, including at or after the target date.

Drivers of Fund Performance

For the quarter, the Fidelity Freedom® Funds (the Funds) posted strong absolute returns. Four of the Fidelity Freedom Funds (Income, 2000, 2005, 2010) outpaced their primary benchmarks while two (Income and 2000) outperformed their respective Composite benchmarks. The Funds' investments in the non-U.S. equities, bonds and short-term debt asset classes outperformed their respective benchmarks, while allocations to U.S. equities underperformed. Overall and by design, equity positions had greater influence on the total return of the longer-dated portfolios and a lesser effect on shorter-dated portfolios. The relative performance differential of each Fund was driven primarily by security selection and out-of-benchmark positioning.

U.S. Equity

  • The Funds' U.S. equity investments, in aggregate, underperformed their asset-class benchmark, the Dow Jones U.S. Total Stock Market IndexSM.
  • Among the leading detractors from relative performance were Fidelity® Series Equity-Income Fund and Fidelity® Growth Company Fund.
  • An out-of-benchmark position in Fidelity Series Commodity Strategy Fund also detracted, as commodities ranked among the weakest-performing asset classes during the quarter.
  • Unrewarded stock selection in the information technology sector outweighed positive selection in the financials sector. An underweight in financials also helped.

Non-U.S. Equity

  • The Funds' international equity investments, in aggregate, outperformed their asset-class benchmark, the MSCI® EAFE® Index.
  • Fidelity Series International Growth Fund and Fidelity Series International Value Fund, the largest allocations within the asset class, both contributed to results.
  • From a country perspective, the Funds benefited from stock selection in Hong Kong and Japan, while selections in Turkey and Brazil hurt.
  • Among sectors, positive security selection in the information technology and consumer discretionary sectors outweighed unrewarded selection from energy and health care.

Bonds

  • The Funds' bond investments, in aggregate, outperformed their asset-class benchmark, the Barclays® U.S. Aggregate Bond Index.
  • The Fidelity Series Investment Grade Bond Fund was flat while the Barclays U.S. Aggregate Bond Index posted a negative return.
  • Overweighting investment-grade corporate debt helped fund performance, as spreads over U.S. Treasuries tightened modestly during the quarter. In particular, heavy emphasis on financials (banks) was additive to fund results, as that sector solidly outperformed the credit market.
  • A small allocation to Build America Bonds (BABs), which are taxable municipal bonds, was a positive contributor to results. Out-of-benchmark positions in Fidelity Series High Income Fund, Fidelity Series Floating Rate Debt Fund, Fidelity Series Emerging Markets Debt Fund and Fidelity Series Real Estate Income Fund also helped.

Short-Term

  • The Funds' short-term investments, in aggregate, outperformed the Barclays® U.S. 3-Month Treasury Bellwether Index.
  • The short-term portion of the Funds was roughly split between two holdings: Fidelity Institutional Money Market Portfolio and Fidelity Short-Term Bond Fund.
  • The relative strength during the quarter was largely driven by the Fidelity Short-Term Bond Fund. Within Fidelity Short-Term Bond Fund, overweighting investment-grade corporate debt benefited fund performance, given their higher level of income and spread-tightening over U.S. Treasuries during the quarter. Here again, an emphasis on financials (banks) was additive, as the sector solidly outperformed.
  • Also, out-of-benchmark allocations to asset-backed and commercial mortgage-backed securities exerted positive effects on performance as risk assets rallied.

Finally, we remain committed to a disciplined investment process in pursuit of strong long-term results for our shareholder.

Fund Manager(s)

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Brett Sumsion since 1/21/2014 Andrew Dierdorf since 6/21/2011

Strategy & Objective

Objective

Seeks high total return until its target retirement date. Thereafter, the fund's objective will be to seek high current income and, as a secondary objective, capital appreciation.

Strategy

Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2040). Ultimately, the fund will merge with Fidelity Freedom Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund's target retirement date in an effort to achieve the fund's overall investment objective.

Watch a brief video to learn about using the new mutual fund library to evaluate funds

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

1. No Transaction Fee Fidelity funds are available without paying a trading fee to Fidelity or a sales load to the fund. However, the fund may charge a short-term trading or redemption fee to protect the interests of long-term shareholders of the fund. Shares are subject to the fund's management and operating expenses. See Expenses & Fees for more information.

2. Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. Life of fund figures are reported as of the commencement date to the period indicated and are cumulative if the fund is less than one year old. Total returns do not reflect the fund's [%] sales charge. If sales charges were included, total returns would have been lower.

3. The Morningstar Category Average is the average return for the peer group based on the returns of each individual fund within the group, for the period shown. This average assumes reinvestment of dividends.

4. This chart illustrates the performance of a hypothetical $10,000 investment made in this investment product (and a benchmark or category average, if shown) from the beginning date shown or on the inception date of the product (whichever is later). The inception date used for products with underlying funds, or multiple shares classes, or are offered as a separate account, strategy or sub account, may be the inception date of the underlying fund, the earliest share class of the product, or the date composite performance for the product was first made available. The product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Benchmark returns include reinvestment of capital gains and dividends, if any, but do not reflect any fees or expenses. It is not possible to invest in an index. Past performance is no guarantee of future results. This chart is not intended to imply any future performance of the investment product.

5. Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts are $500 or higher. There is no minimum for additional investments in any type of Fidelity fund you already own.

6. Percent Rank in Category is the fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. % Rank in Category is based on total returns which include reinvested dividends and capital gains, if any, and exclude sales charges.

7. The asset allocation shown is presented to illustrate the underlying funds in which the fund invested and may not be representative of the fund's current or future investments. The figures shown are as of the date shown, do not include the fund's entire investment portfolio and may change at any time.

8. Any holdings, asset allocation, diversification breakdowns or other composition data shown are as of the date indicated and are subject to change at any time. They may not be representative of the fund's current or future investments. The Top Ten holdings do not include money market instruments or futures contracts, if any. Depository receipts are normally combined with the underlying security. Some breakdowns may be intentionally limited to a particular asset class or other subset of the fund's entire portfolio, particularly in multi-asset class funds where the attributes of the equity and fixed income portions are different.

Under the asset allocation section, international (or foreign) assets may be reported differently depending on how an investment option reports its holdings. Some do not report international (or foreign) holdings here, but instead report them in a "Regional Diversification" section. Some report them in this section in addition to the equity, bond and other allocation shown. Others report international (or foreign) holding as a subset of the equity and bond allocations shown. If the allocation without the foreign component equals (or rounds to) 100%, then international (or foreign) is a subset of the equity and bond percentage shown.

9. Investors should allocate assets based on individual risk tolerance, investment time horizon, and personal financial situation. A particular asset allocation may be achieved by using different allocations in different accounts or by using the same one across multiple accounts. The glide path is not intended as a benchmark for individual investors; rather, it is a range of equity allocations that may be appropriate for many investors saving for retirement. When choosing a Freedom Fund, investors should consider whether they anticipate retiring significantly earlier or later than age 65 even if such investors retire on or near a fund's approximate target date. There may be other considerations relevant to fund selection and investors should select the fund that best meets their individual circumstances and investment goals.

10. Fidelity may deduct a small balance maintenance fee of $12.00 from a fund balance with a value less than $2,000. Fund positions opened after September 30 will not be subject to the fee for that calendar year. This fee will not be deducted from fund positions opened after January 1 of that calendar year if those positions use regular investment plans. Refer to the fund prospectus for details.

Strategic Advisers, Inc., a subsidiary of FMR LLC., manages the Fidelity Freedom Funds.

Generally, data on Fidelity mutual funds is provided by FMR, LLC, Morningstar ratings and data on non-Fidelity mutual funds is provided by Morningstar, Inc. and data on non-mutual fund products is provided by the product's investment manager, trustee or issuer or the plan sponsor whose plan is offering the product to participants. Although Fidelity believes the data gathered from these third-party sources is reliable, it does not review such information and cannot warrant it to be accurate, complete or timely. Fidelity is not responsible for any damages or losses arising from any use of this third-party information.

Before investing, consider the investment objectives, risks, charges and expenses of the fund or annuity and its investment options. Contact Fidelity for a free prospectus and, if available, summary prospectus containing this information. Read it carefully.